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Software Deal Tied to Smart Manufacturing Strategy

Feb. 2, 2017
Hexagon AB is buying simulation specialist MSC Software for $834 million Virtual process simulation Automotive, aerospace, and electronics verticals “… actionable manufacturing intelligence”

Hexagon AB is buying MSC Software for $834 million in a debt-free transaction that the Swedish high-tech group claimed will strengthen its “smart connected factory strategy,” supplying enterprise “solutions” to vertical manufacturing sectors.

The acquisition is expected to be complete in April, and it remains subject to clearance and standard regulatory filings.

MSC will continue as an independent business unit within Hexagon’s Manufacturing Intelligence (MI) division, where the strategic emphasis is on “end-to-end solutions” for vertical manufacturing supply chains.

California-based MSC Software is best known as a developer of CAE software programs, especially including simulation software for virtual product and manufacturing process development. It has a notable presence in the automotive, aerospace, and electronics verticals, with OEMs and their component and system suppliers.

“Process-oriented solutions are essential for manufacturers, and MSC’s solutions address key design and engineering processes," according to the software developer.

Hexagon defines itself as a “precision measuring technology” company and has three business units — surveying/GPS, industrial metrology, and general technology. Its products include fixed and portable coordinate measuring machines, GPS systems, machine control systems, laser meters, sensors for measurement, and software systems, particularly PC-DMIS.

"MSC represents a game changer in our mission to deliver actionable manufacturing intelligence, taking us another step closer to realizing our smart connected factory vision in discrete manufacturing industries such as automotive and aerospace," stated Hexagon president and CEO Ola Rollén.

"We can now leverage the data our MI division is generating to improve design choices and processes upstream in the workflow,” Rollén added.

“Our mission continues to be laser-focused on driving leadership in simulation tools, with solutions from materials to systems,” according to MSC Software president and CEO Dominic Gallello. “Although our mission and roadmap does not change, we anticipate that our ability to offer additional process-oriented solutions from design to manufacturing will be enhanced by joining forces with Hexagon.” 

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